Bitcoin mining researchers claim new tech ups winning hash chance by 260%

August 17, 2023 Coin Telegraph

ASIC

U.K.-based research company Quantum Blockchain Technologies has developed algorithmic search methods that boost Bitcoin mining efficiency and reward probability.

Quantum Blockchain Technologies (QBT), a research company based in the United Kingdom, has developed artificial intelligence-powered algorithms that could significantly increase the mining winning probability of certain ASIC Bitcoin (BTC) miners, CEO Francesco Gardin said in an interview with Cointelegraph.

Speaking exclusively to the publication, Gardin unpacked how Quantum Blockchain Technologies (QBT) has incorporated AI to enable the smart search of winning hashes as an alternative to conventional random searches.

In the space of two years, the company has developed a number of different patented methods by tapping into the expertise of some twenty experts from the fields of quantum computing, machine learning, cryptography, ASIC chips design and algorithm optimization theory.

QBT’s machine learning teams have developed two different algorithmic search methods which reportedly improve performance of ASIC miners by increasing efficiency and winning result probabilities.

“Method A” is said to improve miner efficiency by 10% while “Method B” is set to improve the probability of a miner finding a winning has by 260%.

Gardin said that the company is looking to explore three specific areas, starting with a short term target of increasing mining performance of existing commercial ASIC chips by adding a software AI component running on a mining rig.

The team is also designing a new architecture for ASIC mining chips to optimize Bitcoin mining, which it detailed in a recent patent application.

Meanwhile QBT has a long term goal of using quantum computers to mine Bitcoin using an in-development SHA-256 computation method that can operate on quantum computing systems.

QBT announced a patent application in July 2023 for the latter, outlining its architectural change to Bitcoin mining ASIC chips which it claims pre-processes data used by future blocks on the Bitcoin blockchain.

Gardin said the QBT Message Scheduling for Cryptographic Hashing ASIC (MSFCA) is able to perform pre-calculations of future BTC blocks before the current block is closed. The “anticipatory resource efficiency algorithm” reduces logic gates of SHA-256 ASIC architecture.

Logic gates are software or hardware devices that carry out logical operations. According to Gardin, MSFCA allows miners to use less logic gates, lowering energy costs and improving efficiency of ASIC mining hardware.

The firm estimates that miners could free up to 8% of logic gates of SHA-256 ASIC chips by pre-processing data used by future blocks on the Bitcoin blockchain, which would make certain logic gates involved in the computation of that data no longer necessary on the ASIC chip.

Gardin also weighed in on the potential for these new methods to influence the Bitcoin mining industry. The QBT said that BTC mining is highly dependent on hardware configurations and hashing power of miners as well as expending considerable amounts of energy.

Gardin added that the probability of finding the winning hash increases with the number and halving speed of a miners’ fleet or an entire pool as well as the corresponding cost of energy while conducting a “completely random search”.

“There are no methods, intelligence, or strategy in current BTC mining, but simply brute force and luck.”

Although the mining rigs market is dominated by just a handful of ASIC manufacturers, Gardin believes that there are minimal differences, features or distinct advances between hardware aside from differences in hashing rates and power consumption.

He added that QBT’s technology, which was mainly developed using Intel’s Blockscale ASIC chips which were recently pulled from production, would provide advantages to any mining rig.

The firm’s technologies are being touted to give an “uncatchable advantage” using AI and SHA-256 optimization and while QBT does not plan to open source its patented methods, Gardin said QBT is considering different options to take its solutions to the Bitcoin mining market.

This could include subscription, licensing, forming a joint venture or outright purchase of the company and its associated technologies.

Magazine: Bitcoin is on a collision course with ‘Net Zero’ promises

Bitcoin miners still bullish despite toughest bear market yet – Hut8, Foundry, Braiins

July 21, 2023 Coin Telegraph

Bitcoin

Bitcoin mining firms have been forced to sell newly minted Bitcoin to cover operational costs during one of the toughest bear markets for miners on record.

Bitcoin (BTC) miners have been up against the ropes over the past year, with record amounts of BTC sent to centralized exchanges to cover costs in 2023.

As Cointelegraph previously reported, the Bitcoin mining ecosystem has had an eventful year. The industry scored a staggering $184 million from transaction fees in the second quarter of 2023, eclipsing the total of 2022 on the back of a BTC price rebound and hype around BRC-20 tokens.

Stocks in prominent mining firms have also seen impressive gains in 2023, far exceeding Bitcoin’s market value performance. The top nine public Bitcoin mining firms saw their market capitalization increase by 257% from the start of 2023.

Meanwhile miners have also been forced to continue selling mined BTC to cover operational costs as the industry continues to attempt to claw its way out of a prolonged bear market. Miners sent a record $128 million worth of Bitcoin to exchange in June 2023, with industry experts highlighting miners' propensity to send BTC to exchange to cash out, cover costs and lock in profits.

A market report from Bitfinex suggests that mining firms are looking to derisk by offloading BTC to exchanges. Analysts believe miners are engaging in hedging activities in the derivatives market, carrying out over-the-counter orders or transferring funds through exchanges for other reasons.

Cointelegraph reached out to a number of prominent mining companies to unpack the current mining climate and the recent trends emerging from the sector.

Jaime Leverton, CEO of Hut8, highlighted the company’s efforts to close-off a merger with USBTC which has hampered its ability to raise capital through an at-the-market offering. After announcing the upcoming merger, Leverton said Hut8 treasury strategy included the option selling from its Bitcoin holdings and newly produced BTC to cover its operating costs:

“We plan to revisit our treasury strategy once our merger is complete. As such, we were the last major Bitcoin miner to sell part of our production earlier this year.

Leverton added that Hut8 still holds more that 9,100 BTC ($271 million) and the firm remains “bullish on Bitcoin and HODLing”, given that it retains one of the largest self-mined Bitcoin reserves from a publicly traded company.

Hut8 disclosed that it had sold 217 Bitcoin mined across May and June for $7.9 million in its most recently published production and operation update.

Foundry’s business development senior manager Charles Chong also weighed in on the subject, while the firm declined to comment on whether it had held any BTC holdings in 2023.

As Chong explained, bull market conditions in the past saw miners earning a 60-80% margin on production, while external capital was abundant, allowing many operators to hold onto their mined BTC.

“However, we are in a different time now with scarce external capital and only a 15-30% margin, forcing miners to liquidate their bitcoin to cover operational costs.”

Chong also added that it was difficult to compare current market conditions to subsequent bear markets following market peaks in 2017 and 2021. He said that Bitcoin mining moved in cycles as miners “overinvest” in ASIC mining equipment during good times.

It’s worth noting that the Bitcoin mining difficulty has also hit recent all time highs, which suggests that the network is at its most robust. Chong explained that new, more efficient mining capable of higher hashrates have continuously been released into the market in 2023, which has forced miners to refresh their fleet to continue producing BTC at a profit.

“That said, total energy usage by the network has been slowly creeping up as well, albeit at a slower pace, indicating increasing investment in security for the network.”

A spokesperson from Braiins mining told Cointelegraph that continuing difficulty increases are a result of hashrate increasing, which signals that industry participants see potential upside for BTC's price in the future:

"To us, this is a sign that miners are still able to deploy machines profitably in the current environment and are bullish on Bitcoin's future price appreciation."

Ongoing market conditions have also seen the closure of some prominent mining firms, including Core Scientific which filed its chapter 11 bankruptcy plan in June 2023. The firm has already managed to raise significant capital to bootstrap a reorganization plan earmarked for September 2023 .

Magazine: Bitcoin is on a collision course with ‘Net Zero’ promises

Bitcoin miners hedging with recent sell-offs – Bitfinex report

July 19, 2023 Coin Telegraph

Bitcoin

All-time high hashrates and mining difficulty indicates that miners are bullish on Bitcoin, while recent sell-offs could be a means to hedge positions.

Bitcoin (BTC) mining companies are employing derisking strategies by offloading Bitcoin to exchanges, according to a market report from Bitfinex.

The cryptocurrency trading platform’s latest newsletter addresses the Bitcoin mining sector at length, highlighting a recent surge in miners selling large volumes of BTC to exchanges. This has led to a corresponding increase in value of shares in Bitcoin mining companies as institutional interest in BTC picks up in 2023.

The report notes that Poolin has accounted for the highest amount of BTC sold to the market in recent weeks. Bitfinex analysts also note that the Bitcoin mining difficult recently hit an all-time high, which it labels as an indicator of “robustness and miner confidence”:

“Miners are clearly bullish on Bitcoin as they commit more resources to mining, hence triggering the mining difficulty, but they are hedging their position, hence the despatch of more Bitcoin to exchanges.

The report goes on to suggest that miners are hedging positions on derivatives exchanges, with 70,000 BTC in 30-day cumulative volume transferred in the first week of July 2023.

While miners historically transfer BTC to exchanges using derivatives as a hedge for large spot positions, the report labels the high volumes as uncharacteristic:

"A transfer to exchanges on this scale is extremely rare and potentially showcases new miner behaviour.”

Bitfinex also cited data from Glassnode that indicated that Poolin has been responsible for a large portion of this activity, with the BTC mining pool offloading BTC to Binance.

The analysts note that several plausible reasons could be behind recent mining behaviour. This could include hedging activities in the derivatives market, carrying out over-the-counter orders or transferring funds through exchanges for other reasons.

Bitcoin mining difficulty and corresponding market price. Source: Blockchain.com

The increase in mining difficulty is also indicative of new mining power being added to the Bitcoin network. Analysts suggest that this is seen as a sign of increased network health, as well as increased confidence in the profitability of mining, either by increased BTC prices or improved hardware.

“Thus, miners are at a peculiar situation where they are rapidly increasing their mining potential as the Bitcoin halving inches closer whilst simultaneously hedging their exposure to an extent which is higher and more cautious than previous cycles.”

The report also suggests that on-chain Bitcoin movements reflect a transfer of supply from long-term holders to short-term holders. This investor behavior is said to be commonly seen in bull market conditions, as new market traders look for quick profits while long-term holders capitalize on increased prices.

Cointelegraph has reached out to a handful of mining companies and pools to ascertain why Bitcoin outflows from miners have increased over the past month. As recently reported, miners sent over $128 million in revenue to exchanges at the end of June 2023.

Magazine: Bitcoin is on a collision course with ‘Net Zero’ promises

Miners send millions to exchanges — 5 things to know in Bitcoin this week

July 3, 2023 Coin Telegraph

Banks

Bitcoin miners appear to be reducing risk as the significance of BTC price above $30,000 remains firmly in evidence.

Bitcoin (BTC) starts the first week of July with a sigh of relief for traders as $30,000 support holds.

BTC price action refuses to succumb to bears after 20% gains in Q2, with weekly and monthly timeframes looking strong. What’s next?

A quiet week is expected on TradFi markets, with Wall Street gearing up for the Independence Day holiday and little in store in terms of United States macroeconomic data.

Bitcoin thus needs volatility triggers from elsewhere if bulls are to have a shot at breaching resistance in place for several months.

Views among market participants are mixed on that topic — some believe that $32,000 and higher is easily achievable, while others consider this month as the peak of Bitcoin’s 2023 recovery.

Cointelegraph takes a look at some of the major factors set to influence BTC price performance in the coming days and weeks.

Short-term BTC price upside calls extend to $40,000

Bitcoin’s weekly close was convenient for bulls, offering only modest volatility, with BTC/USD continuing higher overnight.

The new week thus saw a visit to $30,850 on Bitstamp, per data from Cointelegraph Markets Pro and TradingView — the latest attempt to act closer to the $31,000 mark and the yearly highs.

*BTC/USD 1-hour chart. Source: TradingView*

Fuel for a trend change nonetheless remains absent, leading more optimistic traders to wait and see when it comes to upside continuation.

“My Bitcoin plan remains the same,” popular trader Jelle summarized to Twitter followers in part of his latest analysis.

“Market structure is bullish, we've reclaimed the 200-week EMA. Once we the $32k resistance area, I expect the bull market kicks off. Until then, we trade the range and buy deeper pullbacks.”

Jelle referred to the 200-week exponential moving average (EMA), which together with its counterpart simple moving average (SMA) continue to act as market support after a brief challenge in June.

An accompanying chart showed the first major upside target as the current all-time high at $69,000.

*BTC/USD annotated chart. Source: Jelle/Twitter*

Fellow trader Crypto Ed hoped for a push toward $36,000 and even $40,000, while considering the likelihood of a retracement to $28,000 — already a popular dip-buying zone — first.

Market structure, he said, remained “good” despite last-minute volatility into the end of the month, with BTC/USD wicking to $29,500.

# BTC following my plan for $36+40k so far....
Nice reactions Friday on red and green box.

In my next YT update I'll explain what I expect from here. 1 more ABC down towards 28k, or up only?

Should be online around 10am CET. pic.twitter.com/Xu13Ra0mP5
— Ed_NL (@Crypto_Ed_NL) July 3, 2023

On-chain monitoring resource Material Indicators meanwhile noted Bitcoin whales’ role in maintaining the BTC price range.

#FireCharts shows Purple Whales have been buying dips and distributing through the range, and Brown Mega Whales buying into liquidity at resistance to elevate the range.

Historically, Purple Whales have had the most influence over #Bitcoin PA.

Use Promo Code MIJ4TH for 25%… pic.twitter.com/QE1UDypKHZ
— Material Indicators (@MI_Algos) July 3, 2023

“No question BTC whales have been distributing in the $30k range, but they’ve also been buying the dips which have helped keep BTC in this range,” part of further analysis added.

As Cointelegraph reported, July has never seen more than 10% losses for BTC price, but this is not stopping one popular trader, CryptoBullet, forecasting an end to bullish moves this month.

Predicting the area around $36,000 as the local top, CryptoBullet predicts that downside — including giving up the key moving averages — will come next.

“I'm not saying we'll dip to 20k this or next month. Imo it will happen in Q4,” he wrote in subsequent Twitter comments on his original prediction.

Banks in focus over bond-buying losses

The macroeconomic climate looks set to be mercifully calm this week as the U.S. centers on the July 4 Independence Day holiday.

Little macroeconomic data is due, and barring curveball events, crypto should receive little volatility from sources such as changing inflation expectations.

Those expectations remain anchored in interest rate hikes returning later this month, however, when the Federal Reserve meets to decide on future policy.

As of July 3, data from CME Group’s FedWatch Tool puts the odds of a 0.25% hike at nearly 90%. The decision is due in three weeks’ time.

*Fed target rate probabilities chart. Source: CME Group*

“Every week feels pivotal as Fed rate expectations shift rapidly. Meanwhile, stocks are pushing 52-week highs and trading has been great,” financial commentary resource The Kobeissi Letter summarized about the mood, calling the coming week “short but important.”

Elsewhere, increasing attention is being paid to the U.S. banking sector.

Regional banks continue to struggle, as evidenced by the performance of the KBW Regional Banking Index (KRX).

Is this the most important chart today ?

⚠️The Regional US Bank Index⚠️

Fallen by two-thirds and yet it can't find a bid

Shorted by all, and yet it can't catch a bid...

The 2008 monologue says the Fat Lady sings when this retraces 50% of its losses, $105 - $110, and yet it… pic.twitter.com/ATeuxuasFG
— Hugh Hendry Eclectica (@hendry_hugh) July 1, 2023

Even Bank of America (BoA) is on the radar for its loss-making bond purchases, a problem likewise faced by Germany’s central bank.

“These incredible headlines don't get enough attention,” angel investor Balaji Srivinsan argued about a Financial Times piece on the Bundesbank’s predicament.

“The central bank of the fourth largest economy in the world may need a bailout because it bought bonds. This isn't a tech crisis or even a banking crisis. It's a bond crisis, a central bank crisis, a fiat crisis.”

Kobeissi meanwhile warned that the U.S. bank implosions which sparked the March Bitcoin bull run shared key similarities to the current situation with BoA.

New FDIC data shows Bank of America, $BAC, faces $100+ BILLION in bond market paper losses.$BAC claims it's not an issue as they don't plan to sell.

Sound familiar? That's because it is.

Both Silicon Valley Bank and First Republic collapsed for this reason.

(a thread)

1/12
— The Kobeissi Letter (@KobeissiLetter) July 2, 2023

Bitcoin miners challenge record exchange transfers

Bitcoin miners have underscored the significance of BTC price action passing and holding $30,000 — but perhaps not in the way bulls would like.

Data from on-chain analytics firm Glassnode reveals a huge increase in the amount of coins miners are sending to exchanges.

This even surpassed levels from April 2021, when BTC/USD hit $58,000 in the first of the year’s new all-time highs.

“Following the ascension in spot price above the psychologically key $30K level, Bitcoin Miners have continued to send large clips of BTC to exchanges,” Glassnode commented.

“Currently, Miners are sending $105M to exchanges, the second largest USD denominated transfer on record.”

*Bitcoin Miners to Exchanges inflows annotated chart. Source: Glassnode/Twitter*

Miner balances, however, maintain a slow overall uptrend in place since the start of 2023. On Jan 1, Glassnode data shows, the balance tally stood at 1,824,377 BTC, compared to 1,827,916 BTC on July 2.

*Bitcoin Balance in Miner Wallets chart. Source: Glassnode*

Despite the sales, there is little evidence to suggest that BTC miners are experiencing difficulties. Hash rate currently remains near all-time highs, while network difficulty is just 3.26% below its own record levels seen last month.

*Bitcoin network fundamentals overview (screenshot). Source: BTC.com*

BTC hodlers in profit refusing to sell

A more inspiring picture comes from the stalwart Bitcoin investor cohorts refusing to sell no matter the price.

Even within the context of this year’s gains, Bitcoin hodlers are staying firm in their resolve not to take profit en masse.

This is now being reflected in the amount of the BTC supply deemed “illiquid,” or out of reach in the event that strong buying pressure returns.

Glassnode’s Illiquid Supply Change metric is “extremely elevated,” currently at levels not seen at any time except during the pit of the 2022 bear market. While prices have increased, so has hodler conviction.

The #Bitcoin Illiquid Supply Change remains extremely elevated near cycle highs as HODLing remains prominent.

Currently, coins are flowing into illiquid wallets with little to no history of spending at a rate of +194.5K BTC per month.

https://t.co/uPfaksndNc pic.twitter.com/RRijcPWLCE
— glassnode (@glassnode) June 28, 2023

On paper, hodlers have every reason to take profit at $30,000. Glassnode’s Long-Term Holder Market Value to Realized Value (LTH-MVRV) metric, which charts profitability of coins held for 155 days or more, currently shows that the average LTH entity is 47% in profit on their position.

*Bitcoin Long-Term Holder Market Value to Realized Value (LTH-MVRV) chart. Source: Glassnode*

Sentiment reflects investor indecisiveness

Lastly, the jittery nature of the average crypto market participant remains firmly on display in sentiment data.

The Crypto Fear & Greed Index continues to highlight just how malleable sentiment is depending on how Bitcoin treats the $30,000 mark.

It is not only BTC/USD which is facing a key resistance/support flipping task — Ether (ETH), too, has its work cut out to reclaim $2,000.

As such, Fear & Greed continues to bounce around between the mid-50s — “neutral” — and mid-60s, or “greed.”

*Crypto Fear & Greed Index (screenshot). Source: Alternative.me*

Current 2023 highs for the Index are at 69/100, with levels at Bitcoin’s 2021 all-time highs of $69,000 only around 10% higher.

Magazine: How smart people invest in dumb memecoins: 3-point plan for success

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

SEC, CPI and a ‘strong rebound’: 5 things to know in Bitcoin this week

June 12, 2023 Coin Telegraph

Bitcoin

Bitcoin faces a week full of potential price triggers — both up and down — as BTC price action drops below a major trend line.

Bitcoin (BTC) starts a “massive” week in a precarious position as key support stays out of reach for bulls.

After fresh losses across crypto markets over the weekend, BTC/USD closed the week below $26,000 for the first time in three months.

Both Bitcoin and altcoins continue to struggle thanks to legal battles raging in the United States and their impact on sentiment.

Fragile markets will now encounter a slew of volatility triggers, however, as U.S. macro data releases accompany the next steps in the crypto legal debacle.

In what promises to be five days full of surprises, traders will likely experience none of the lackluster sideways price action which was characteristic of crypto markets before the U.S. upheaval.

How will the coming week shape up? Cointelegraph takes a look at the major things to consider when it comes to Bitcoin and wider crypto market price action.

Bitcoin loses key trend line, but some remain bullish

Bitcoin price closed the weekly candle in a disappointing position thanks to last-minute downside wiping value from crypto as a whole.

The removal of various altcoins by certain trading platforms concerned about U.S. legal ramifications sent prices tumbling — and led BTC/USD to its lowest weekly close since mid-March, data from Cointelegraph Markets Pro and TradingView shows.

*BTC/USD 1-day candle chart on Bitstamp. Source: TradingView*

In doing so, the pair also locked out the 200-week moving average (MA) as support.

“A BTC Weekly Candle Close below the 200-week MA could confirm it as a lost support,” trader and analyst Rekt Capital warned beforehand.

“In that case, $BTC could relief rally into the MA next week, potentially to flip it into new resistance. This sort of turn of technical events could precede additional downside.”

*BTC/USD annotated chart. Source: Rekt Capital/Twitter*

Michaël van de Poppe, founder and CEO of trading firm Eight, held similar concerns about the fate of the total crypto market cap.

Mayday, mayday.

Total market capitalization is beneath the 200-Week MA and EMA.

Needs to get back above $1.04T during this week to avoid further downwards momentum for #Crypto. pic.twitter.com/J5lb8G5APU
— Michaël van de Poppe (@CryptoMichNL) June 12, 2023

With traders’ downside targets already extending to $24,000 and below, some took the opportunity for more optimistic takes on both shorter and longer timeframes.

Daan Crypto Trades noted upside potential thanks to the weekend losses opening up a CME futures gap.

That gap stands between $26,150 and $26,500, with BTC/USD previously “filling” another within hours.

*CME Bitcoin futures 1-day candle chart. Source: TradingView*

Continuing, popular trader Credible Crypto insisted that despite everything, long-term resistance levels for Bitcoin would not pose much of a problem in the end. $40,000, he repeated, was still a target of choice.

“When you have a major correction down and folks are underwater there is resistance to the upside as moves up are sold into by bag holders. When you have capitulation down and folks have been drowned (forced to sell at the bottom) that sell pressure no longer manifests as we move up because ‘there is no one left to sell,’” part of weekend Twitter commentary read.

“If bag holders dumped at the bottom then the only sell pressure above is from short term traders/profit takers and that’s not enough to stop a major impulsive move in its tracks for long. Expect ‘major resistance levels’ above to get melted through a lot faster than most are expecting.”

Bitcoin runs gauntlet ahead of "massive" macro week

The coming week offers a rare deluge of potential crypto price triggers from the wider economic and geopolitical establishment.

MASSIVE Week:

Monday:
- Deadline for Binance and Binance US to respond to SEC's application for a temporary restraining order

Tuesday:
- Motion for temporary Binance US restraining order hearing
- Hinman's documents release (XRP)
- CPI Data Release

Wednesday:
- US Rate…
— Daan Crypto Trades (@DaanCrypto) June 12, 2023

In addition to the ongoing ramifications of the U.S. Securities and Exchange Commission (SEC) versus multiple exchanges, macroeconomic data promises volatility of its own.

June 13 will see the May print for Consumer Price Index (CPI) inflation, and unlike last time, markets are expecting the Federal Reserve to enact a pause in interest rate hikes.

This would end an uninterrupted hiking cycle which began in late 2021 — right when Bitcoin saw its current all-time high.

According to CME Group’s FedWatch Tool, the odds of a pause stood at 75% at the time of writing on June 12.

With a loosening of economic conditions on the horizon, market commentators both within crypto and beyond are considering the odds of a risk asset rally.

Biggest opportunity for equities to go higher? Rapid decline in inflation as rents and food costs come down, which allows Fed to pause int rate hikes in June and ultimately reduce rates by Y.E.

Biggest risk? Narrow breadth.
- Eight stocks account for 30% of S&P 500 market cap… pic.twitter.com/WePpRfNzxz
— Gary Black (@garyblack00) June 12, 2023

“Pretty convinced that the money maker this week is A Fed Pause/Skip which sends $BTC past 30k,” popular trader Traderhc told Twitter followers.

Fellow trader Skew added that the CPI event would “likely set the mood” for the week’s price action.

In addition to CPI, meanwhile, the June meeting of the Federal Open Market Committee (FOMC) has the potential to spark market-moving soundbites from Fed Chair, Jerome Powell.

The rates decision is due June 14, along with a copycat announcement from the European Central Bank (ECB) a day later. June 15 will see additional macroeconomic data releases.

Before all that, however, fallout from the SEC versus Binance and Coinbase saga may already move prices.

“Tomorrow will be a big day for the market,” Philip Swift, co-founder of trading suite Decentrader predicted on June 11.

“The SEC has to respond to Coinbase's request for rulemaking... ...and US district court hears SEC’s petition for temporary restraining order on binance US at 2pm. Buckle up.”

Bitcoin fundamentals to the moon

As is often the case with Bitcoin, short-term price action is meeting its match in underlying network data which displays an altogether different trend.

This week, as with almost every time in 2023, network difficulty and hash rate are aiming for new all-time highs.

Hash rate is already higher than ever, according to some estimates, while difficulty will increase by approximately 2.5% on June 14. This will take it past 53 trillion for the first time.

Data from monitoring resource BTC.com confirms that network fundamentals really are in “up only mode” despite BTC price pressures, with 2023 only seeing three difficulty reductions out of 12 adjustments in total.

“Bitcoin hashrate will not stop growing. This is insane,” Mitchell Askew, social media associate at Blockware, reacted.

“Mining is ruthless, free-market competition in its purest form.”

As Cointelegraph often reports, the concept of Bitcoin spot price following hash rate in particular has long been a mantra for industry stalwarts, among them the popular but outspoken BTC advocate, Max Keiser.

Miner exchange inflows jump

Swift nonetheless described the current difficulty levels as “increasingly challenging” for all but the most robust miners.

#bitcoin Miner Difficulty just made a new all-time-high!
An increasingly challenging environment for any underperforming miners.

Difficulty now at 51.2 Terahashes.

Free live chart: https://t.co/dEnNrrD4l4 pic.twitter.com/V8QNKyXAPv
— Philip Swift (@PositiveCrypto) June 9, 2023

Data from on-chain analytics firm Glassnode meanwhile tracks the onboarding of miners in real time.

“Despite an uncertain Macroeconomic environment alongside intensifying regulatory pressure, ASICs continue to come online as the Bitcoin Hash Rate (7DMA) reaches an ATH of 381 EH/s,” researchers commented on a chart of hash rate.

“This is equivalent to 381 quintillion guesses attempted every second to solve the Block puzzle.”

Glassnode data meanwhile appears to show miner inflows to exchanges hitting their highest daily levels since 2019 last week.

Across the past week, #Bitcoin Miners have been sending a significant amount of coins to Exchanges, with the largest inflow equal to $70.8M.

This is the 3rd largest inflow on record, -$30.2M less than the peak inflow of $101M recorded during the primary bull market of 2021. pic.twitter.com/w4fNFMcxr4
— glassnode (@glassnode) June 11, 2023

Following up, James Straten, research and data analyst at crypto news and insights platform CryptoSlate, flagged mining pool Poolin as the likely main contributor to the flows.

Whales boost BTC exposure during altcoin sell-off

Analyzing the impact of the latest crypto market upheaval, research firm Santiment meanwhile saw cause for bullishness.

This, it argued in findings published on June 11, is thanks to the buying conviction of Bitcoin’s largest-volume investor cohort — the whales.

As Cointelegraph previously reported, the largest class of whales has diverged from the rest of the investor base since May, accumulating while others distribute BTC.

With altcoins tumbling at the weekend, whales appeared to take the opportunity to increase, rather than decrease, BTC exposure.

“As altcoin madness has ensued, there quietly is a bullish divergence between Bitcoin's accumulating whales and falling price,” Santiment commented.

“With whale holdings moving up by ~1K $BTC per day while prices fall, there is reason to believe a strong rebound can occur.”

*Bitcoin whale activity annotated chart. Source: Santiment/Twitter*

At the same time, sentiment across the broader crypto market continues to reject knee-jerk reactions to the news.

The Crypto Fear & Greed Index remains in “neutral” territory, having barely moved in recent weeks, hovering around the exact center of its 0-100 scale.

Magazine: Tornado Cash 2.0: The race to build safe and legal coin mixers

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Bitcoin mining firms keep building despite BTC mining profitability slump

June 2, 2023 Coin Telegraph

ASIC

Crypto mining firm CleanSpark has been aggressively expanding its fleet of mining machines this year, despite mining profitability being far from its all-time highs.

Despite a 44% decline in Bitcoin (BTC) mining profitability over the last year, some Bitcoin mining companies have continued to build and increase production, according to recent announcements.

On June 1, American Bitcoin mining firm CleanSpark announced that it had purchased 12,500 brand-new Antminer S19 XP units for $40.5 million. The deal worked out at $23 per terahash per second (TH/s), which is lower than the average market price.

Hot off the press! More miners have been purchased by $CLSK for lower than the current average market price. Approximately 12,500 Antminer S19 XP units were bought for $40.5 million - or $23 per terahash.

The units have a power-efficiency rating of 21.5 joules per terahash… pic.twitter.com/TKRxhWXlzx
— CleanSpark Inc. (@CleanSpark_Inc) June 1, 2023

The news comes as Bitcoin mining difficulty reached an all-time high of over 50 trillion on June 1, putting further pressure on miners. The network hash rate was also near its peak level at 395 EH/s on May 30.

CleanSpark’s purchase agreement stipulated that 6,000 machines are scheduled to be shipped by the manufacturer in June, and the remainder will be shipped in August.

Antminer S19 XP units have a hash rate of 141 TH/s, with the combined purchase providing an additional total hash rate of 1.76 exahashes per second to its current 6.7 EH/s. Zach Bradford, CEO of CleanSpark, said:

“This purchase ensures that we are prepared to meet and potentially exceed our year-end target of 16 EH/s.”

CleanSpark’s mining farms are located in Georgia. According to its website, the firm has 67,700 mining machines in operation and has mined 2,395 BTC year-to-date.

*Bitcoin Hashprice over the past year. Source: Hashrate Index*

The company has continued its expansion despite declining Bitcoin mining profitability, which has declined to $0.071 per TH/s per day, down 44% over the past 12 months and 82% since the crypto market peak in late 2021, according to Hashrate Index.

In February, CleanSpark purchased 20,000 brand-new Antminer S19j Pro+ units and in April it added 45,000 S19 XP ASIC rigs to its fleet.

In other recent company updates, Bitfarms announced that it had mined 459 BTC in May, increasing production by 6.5% year-on-year. “A 47% year-over-year increase in our hash rate was offset by a 65% increase in network difficulty in the same period,” said Chief Mining Officer Ben Gagnon.

Cipher Mining announced a record production in May with 493 BTC mined. The increases were due to the transaction fee spike during the BRC-20 memecoin minting craze that peaked in early May.

On May 31, Compass Mining inked a deal with hosting provider Arthur Mining to open a new facility in Ohio.

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